The Board of the Green Climate Fund (GCF) has approved Dutch development bank FMO’s proposal to accelerate private and public sector investment in India’s green infrastructure projects. Through the Green Growth Equity Fund (GGEF), managed by EverSource Capital, FMO will invest $137 million in the energy value chain, water, waste and transport sectors that promote low carbon and climate-resilient initiatives, in line with India’s climate objectives and Sustainable Development Goals. The project is FMO’s second collaboration with the GCF, following the $100 million that the GCF invested in Climate Investor One in 2019.

GGEF targets raising equity capital up to $940 million for India’s green infrastructure sectors such as renewable energy, transport, resource efficiency and energy services. The program is innovatively structured, blending concessional equity and grant capital to mobilise significant amounts of commercial equity to accelerate investments in these sectors, while providing the necessary $4.5 million in technical assistance support to create an enabling environment.

Commenting on the development, Dhanpal Jhaveri, CEO, EverSource Capital said, “We are delighted to receive GCF Board approval for an investment in GGEF. This is the largest single country amount approved by GCF ever for a private sector equity fund focused on climate mitigation. This investment commitment strengthens our resolve and ability to work towards supporting India’s climate objectives and Sustainable Development Goals along with creating impact and value in India’s clean energy ecosystem.”